Consolidated credit counseling is critical in many ways, as more and more people in the US are now discovering. Let us take a detailed look into this and try to figure out what consolidated credit counseling really is, and how it can help people.
If you go carefully through the factors that were responsible for the crumbling of the US economy a few years back, you will find that over-spending was a key factor. From a minuscule pin to the proverbial elephant, everything was within the reach of everyone as long it was available through credit card. But when time came up for paying off the debt, money was always in short supply. Debt collectors attacked from all directions with arsenal as varied as simple money suits to demands for declaration of bankruptcy. However, such a bewildering situation could have been avoided if people heeded to the principles of consolidated credit.
Understanding consolidated credit
What is consolidated credit? This refers to merging all your credits into a combined or consolidated account. But how does this help? It actually helps in many ways. To begin with, you will face only one creditor instead of several of them, each charging different rates of interest. It can certainly be confusing if you have to pay back to different lenders all at the same time. Giving it back to just a single source will certainly simplify matters. In consolidated credit, you pay at a consistent rate of interest and that too at a much lower pace than what is charged by the Shylocks.
However, saying something and doing it in a practice are two different stories altogether. Tracing down all your debts along with their rate of interest and due repayment dates is not easy for a lot of people. It is wiser to seek outside help here. But where is the guarantee that whoever comes with a helping hand will not turn up to be another Judas. The best solution therefore is in looking for non-profit groups that are operating in your area. Yes, established credit counseling companies can help a lot here. Through their credit counseling and debt management programs they can save you from the horrors of bankruptcy.
Their credit counseling agency can assist you in consolidating your sundry debts into a single debt for easy payment. At the same time, their debt management program can assist you to get out of debt without causing any dent in your credit rating.
If necessary, their consolidated credit counselors can review your budget and recommend how best you can manage your personal finance and get rid of the debt. In short, they proffer numerous resources about money management, overall budgeting as well as issues that affect your credit rating.
Nevertheless, you should check for yourself whether you need credit consolidation at all. In some cases, you may find it easier to pay up debt individually than by following a formulae offered by these agencies. But in most instances, the consolidated credit program can help you immensely in leading an easier life that is free of debt.